{"data":{"id":"us/7-cfr-4290.820","jurisdiction":"us","citation":"7 CFR 4290.820","heading":"Financings in the form of guarantees.","body":"(a) General rule. At the request of an Enterprise or where necessary to protect your existing Financing in a Portfolio Concern, you may guarantee the monetary obligation of an Enterprise to any non-Associate creditor.\n(b) Exception. You may not issue a guaranty if:\n(1) You would become subject to State regulation as an insurance, guaranty or surety business; or\n(2) The amount of the guaranty plus any direct Financings to the Enterprise exceed the overline limitations of § 4290.740, except that a pledge of the Equity Securities of the issuer or a subordination of your lien or creditor position does not count toward your overline.\n(c) Pledge of RBIC's assets as guaranty. For purposes of this section, a guaranty with recourse only to specific asset(s) you have pledged is equal to the fair market value of such asset(s) or the amount of the debt guaranteed, whichever is less.","path":["Title 7—Agriculture","Subtitle B—Regulations of the Department of Agriculture","CHAPTER XLII—RURAL BUSINESS-COOPERATIVE SERVICE, DEPARTMENT OF AGRICULTURE","PART 4290—RURAL BUSINESS INVESTMENT COMPANY (“RBIC”) PROGRAM","Subpart I—Financing of Enterprises by RBICs"],"source_url":"https://www.ecfr.gov/api/versioner/v1/full/2026-08-25/title-7.xml","current_through":"2026-08-25","vintage":"","retrieved_at":"2026-08-27T02:24:01Z","sha256":"5fd85c9042b383a4c66cfe46d86d1a837caa736f3f83cb23972c2e73790dd331","source_id":"us-cfr","stale":true,"prev":"us/7-cfr-4290.815","next":"us/7-cfr-4290.825"},"notice":"GroundRules: Original legal text. Not legal advice."}